Virtual reality group Immotion plans to raise \u00a31.3m through an equity fundraising.<\/p>\n
The Salford-based company says it “remains confident in its core strategy” despite the disruption and delays caused by Covid-19.<\/p>\n
It believes its “installed base and contracted pipeline provide a path to profitability once trading conditions return to pre-COVID-19 levels”.<\/p>\n
Immotion has sought to reduce costs, with cash operating costs reduced by more than one-third, to around \u00a3200,000 in April. It has furloughed some staff in the UK and USA and the “vast majority”, including all directors, have taken a pay cut.<\/p>\n
The fundraising would support Immotion’s balance sheet and enable it to trade through an extended period of disruption.<\/p>\n
The new shares will represent nearly 14% of the company’s share capital. The placing, which is not being underwritten, is being carried out by WH Ireland and Alvarium Capital Partners.<\/p>\n
Immotion’s share price has been falling for the past year after an early-summer rally in 2019, when it peaked above 10p. Its shares closed last night at 3.4p while the share placing is priced at 2.5p per share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Business ‘remains confident’ despite disruption and delays<\/p>\n","protected":false},"author":18,"featured_media":2043887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"coauthors":[81],"class_list":["post-2059554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-featured-story"],"yoast_head":"\n